China Cake, Pastries, and Sweet Pies Market - Growth, Trends, and Forecasts (2023 - 2028)

The Chinese cakes, pastries, and sweet pies market is expected to register a CAGR of 10.13% over the forecast period (2022-2027).

In the first half of 2020, due to the impact of the COVID-19 epidemic, necessary measures were taken to prevent and control the epidemic, resulting in the suspension of production of bread bakery factories, interruption of the supply chain, and closure of offline stores, which caused the industry's supply chain system to be disrupted and reduced production efficiency. The epidemic has caused consumers to increase health awareness. Although offline sales channels had been affected by the epidemic and reduced sales, online sales channels had experienced explosive growth. The impact of the COVID-19 epidemic on small and medium-sized enterprises was even more significant because they could not resist risks.

The market is mainly driven by changing lifestyles and increased consumer taste for premium baked goods. Pastries and Sweet Pies are the largest segments and are witnessing rapid growth.

On the other hand, large industrial manufacturers, high-end or large bakery chains, retail outlets, and luxury hotels incorporated their stronghold in making fancy baked products to satisfy the demand for high quality mostly from the middle to high-income urban families and well-educated young generation. This factor is increasing the competition for international players.

China Cakes, Pastries, & Sweet Pies Market Trends

Expanding Distribution Channel, Driving Sales

Rising expansion in the number of bakeries, convenience stores, supermarkets, and hypermarkets are the factors accelerating the market's growth. Artesian retail pastries are pushing their packaged cakes sales for wider distribution in tier II cities and tier III cities for expansion. Product and packaging innovation in different flavors offered by artesian bakers continues to drive pastries consumption. Many large players are shifting their distribution from modern grocery retails to traditional retail channels in rural and tier-II cities to cater to the demand. Specialist retailers hold the largest market share in the overall distribution channel. They offer a special product category and have an in-depth product knowledge category. In 2020, Fujian Dali Food Co. Ltd accounted for 5.6% of the retail sales of bakery products in China, making it the leading bakery products supplier in the country.

Growing Preference for Packaged Baked Good Products

The increased prevalence of the western lifestyle and rising income have triggered the baked goods sale in the region. During the forecast period, China is expected to be the largest market for cakes and pastries globally. Despite the demand for the functional bakery, which is dominant in developed countries, the Chinese prefer to buy novel products with a mix of ingredients and different flavors. Cakes, pastries, and sweet pies hold a significant share of China's total bakery and cereal market. Furthermore, the combination of a high young population demanding western-style baked goods and convenience are some of the underlying factors driving the market's growth.

China Cakes, Pastries, & Sweet Pies Market Competitor Analysis

The Chinese cakes, pastries, and sweet pies market is highly fragmented and competitive. Foodservice channels offering customized baked goods are a tough competition to the retail companies. As their key marketing strategy, companies focus on new product launches with healthier ingredients/organic claims. Increased private label brands pose tough competition to the existing players.

Major players operating in the segment are Fujian Dali Food Co Ltd, Paris Baguette, Nestle SA Grupo Bimbo, and Yamazaki Baking Co., among others.

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